Compass (CPG) AI Stock Analysis

• Market Cap: £42.75B
• Dividend Yield: 2.4%
• Average Volume (3M): 2.74M
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.50
• Revenue Growth: 6.44%
• EPS Growth: 29.42%
• Country: UK
• Employees: 580,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.50
• Shares Outstanding: 1,697,430,200
• 10 Day Avg. Volume: 2,312,330
• 30 Day Avg. Volume: 2,736,327
• PEG Ratio: 12.30
• Price to Book (P/B): 7.55
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 19.31
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £3,006.50
• Price Target Upside: 29.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 2,481.00p ▲(6.76% Upside)

Compass's overall stock score is driven by its strong financial performance and positive earnings call insights, which highlight robust profit growth and operational efficiencies. However, technical analysis indicates bearish momentum, and the valuation suggests the stock is relatively expensive. The conservative future growth guidance and potential leverage increase are additional concerns.

Positive Factors

Strong Profit Growth

The significant increase in operating profit reflects Compass's ability to enhance operational efficiency and profitability, supporting long-term financial health.

Technology and AI Integration

Integration of technology and AI enhances productivity and operational efficiency, providing a competitive edge and supporting sustainable growth.

Client Retention and New Business

High client retention and new business growth indicate strong customer loyalty and market expansion, contributing to stable revenue streams.

Negative Factors

Recent Revenue Decline

A significant revenue decline poses a risk to financial stability and may impact future growth if not addressed through strategic initiatives.

Increased Interest Costs

Rising interest costs from increased debt can strain cash flow and limit financial flexibility, affecting long-term profitability.

Potential Leverage Increase

Potential increase in leverage could elevate financial risk, impacting the company's ability to invest in growth and manage economic downturns.

Compass Business Overview & Revenue Model

Company Description

Compass Group PLC operates as a food and support services company in North America, Europe, and internationally. The company offers support services, such as cleaning in hospitals; reception services at corporate headquarters; managing remote camps; grounds and facilities services at schools and universities; and others. It serves business and industry; healthcare and senior living market; education; sports and leisure; and defense, offshore, and remote sectors. Compass Group PLC was founded in 1941 and is based in Chertsey, the United Kingdom.

How the Company Makes Money

Compass generates revenue primarily through the sale of its consumer packaged goods across multiple retail channels, including supermarkets, convenience stores, and e-commerce platforms. The company's key revenue streams include direct sales to retailers, partnerships with distributors, and private label products. Additionally, Compass benefits from strategic collaborations with major grocery chains and food service providers, which expand its market reach and enhance brand visibility. The company's focus on innovation allows it to create unique products that cater to consumer trends, contributing to its overall profitability.

Compass Financial Statement Overview

Summary

Compass exhibits a solid financial foundation with strengths in profitability and cash flow management. Despite a recent revenue decline, the company's operational efficiency and stable balance sheet provide a buffer. Continued focus on revenue growth and debt management will be crucial for sustaining long-term financial health.

Income Statement

Compass has shown strong revenue growth in recent years, although there was a notable decline of 18% in the most recent year. The company maintains healthy gross and net profit margins, with a consistent EBIT margin indicating operational efficiency. However, the recent revenue drop is a concern that needs addressing.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio. Return on equity is strong, indicating effective use of equity to generate profits. The equity ratio suggests a solid capital structure, though there is room for improvement in reducing debt levels.

Cash Flow

Compass demonstrates robust cash flow management, with positive free cash flow growth and a strong operating cash flow to net income ratio. The company efficiently converts its earnings into cash, supporting its operational and strategic initiatives.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.98B	35.29B	42.00B	31.03B	25.51B	17.91B
Gross Profit	13.82B	2.34B	13.93B	1.95B	1.48B	962.00M
EBITDA	3.16B	3.36B	2.76B	2.74B	2.35B	1.28B
Net Income	1.42B	1.43B	1.40B	1.31B	1.24B	357.00M
Balance Sheet
Total Assets	19.84B	19.84B	24.35B	21.48B	18.75B	14.87B
Cash, Cash Equivalents and Short-Term Investments	427.11M	427.11M	623.00M	1.03B	1.99B	1.84B
Total Debt	5.19B	5.19B	5.91B	5.27B	4.88B	4.48B
Total Liabilities	14.08B	14.08B	17.44B	15.18B	12.84B	9.95B
Stockholders Equity	5.68B	5.68B	6.83B	6.26B	5.87B	4.89B
Cash Flow
Free Cash Flow	2.12B	2.22B	2.23B	1.83B	1.31B	943.00M
Operating Cash Flow	2.52B	2.64B	3.13B	2.17B	1.60B	1.17B
Investing Cash Flow	-1.87B	-1.92B	-1.26B	-1.23B	-874.00M	-727.00M
Financing Cash Flow	-777.15M	-798.86M	-1.53B	-2.09B	-693.00M	-152.00M

Compass Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2324.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CPG, the sentiment is Negative. The current price of 2324 is below the 20-day moving average (MA) of 2381.60, below the 50-day MA of 2474.20, and below the 200-day MA of 2533.21, indicating a bearish trend. The MACD of -42.43 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 14.07 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CPG.

Compass Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MARS	73 Outperform	£372.87M	5.15	9.91%	―	-0.08%	―
JDW	69 Neutral	£683.68M	10.69	17.81%	1.56%	4.52%	50.39%
DOM	68 Neutral	£664.76M	8.78	―	6.53%	-0.67%	2.43%
MAB	66 Neutral	£1.43B	8.52	6.58%	―	3.87%	18.31%
CPG	64 Neutral	£42.75B	37.27	21.77%	2.40%	6.44%	29.42%
SSPG	63 Neutral	£1.17B	-50.14	-48.11%	2.50%	5.98%	-371.14%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Compass Corporate Events

Compass Group PLC Announces Total Voting Rights and Capital Update

Compass Group PLC has announced its total voting rights and capital as of 30 September 2025, with 1,785,403,977 ordinary shares issued, of which 1,697,430,179 are admitted to trading and 87,973,798 are held in treasury. The total number of voting rights for the shares admitted to trading is 1,697,430,179, and the voting rights of treasury shares are suspended. This announcement provides shareholders with the necessary information to determine their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £31.55 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Board and Committee Changes

Compass Group PLC, a leading company in the foodservice and support services industry, has announced changes to its Board and Committee memberships. Non-executive director Stefan Bomhard will retire after nine years of service and will not seek re-election at the upcoming Annual General Meeting in February 2026. The company has confirmed that there will be no changes to the existing Committee Chairs, and the new committee memberships will take effect from October 1, 2025.

The most recent analyst rating on (GB:CPG) stock is a Hold with a £2744.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group Announces Board Appointment of Stefan Bomhard

Compass Group PLC has announced the appointment of Stefan Bomhard to the Board of Flutter Entertainment plc as a Non-executive Director, effective from October 1, 2025. This strategic move is expected to enhance Compass Group’s governance and strengthen its industry connections, potentially influencing its market positioning and stakeholder relations.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £29.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.

Compass Group PLC Announces Total Voting Rights and Capital Update

Compass Group PLC has announced its total voting rights and capital as of 31 August 2025, with an issued share capital consisting of 1,785,403,977 ordinary shares. Of these, 1,697,430,179 shares are admitted to trading, while 87,973,798 shares are held in treasury with suspended voting rights. The company also sponsors a level 1 American Depositary Receipt Programme, allowing its shares to be traded on the New York Stock Exchange. This announcement provides shareholders with the necessary information to calculate their interests under the FCA’s Disclosure Guidance and Transparency Rules.

The most recent analyst rating on (GB:CPG) stock is a Buy with a £2807.00 price target. To see the full list of analyst forecasts on Compass stock, see the GB:CPG Stock Forecast page.